On Monday, April 1, 2019, President Donald Trump
stated in a series of tweets that a vote on a Republican Party (GOP)
replacement health care plan for the Affordable Care Act (ACA) won’t take place
until after the 2020 elections.
President Trump’s tweets stated that the ACA’s
deductibles and premiums are “far too high” and that a replacement is needed.
He continued to state that the GOP’s replacement plan for the ACA will have
“far lower premiums (cost) [and] deductibles” and will be “much more usable.”
He also affirmed that the GOP’s plan would support those with pre-existing
conditions.
These tweets came one week after the president
directed the Department of Justice (DOJ) to support a federal court ruling that
the ACA is unconstitutional.
DOJ Support of Court Ruling
Invalidating the ACA
On March 25, 2019,
the DOJ filed a letter
with the 5th Circuit Court of Appeals agreeing with the lower court’s Dec. 14,
2018, ruling in Texas v. Azar. This
means that the DOJ believes the lower court’s ruling should stand, and the ACA
should be struck down as unconstitutional due to the elimination of the
individual mandate in 2019.
What does all of this mean for employers
and employees?
While the recent developments may seem like
major health care change is on the horizon, employers and employees can expect
things to remain the same for the time being.
The court ruling invalidating the ACA is
currently being appealed, and industry experts anticipate that the Supreme
Court will likely take up the case, meaning that a final decision won’t be seen
until then.
As
such, all existing ACA
provisions will continue to be applicable and enforced. Although the individual
mandate penalty will be reduced to zero beginning in 2019, employers and
individuals must continue to comply with all other applicable ACA requirements.
Source: Zywave, 2019.
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